Stocks Rerversing Sharply Lower into Afternoon on Global Growth Fears, Earnings Outlook Concerns, Surging European/Emerging Markets/US High-Yield Debt Angst, Biotech/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.17 +12.10%

• Euro/Yen Carry Return Index 141.92 -.17%

• Emerging Markets Currency Volatility(VXY) 9.09 +4.24%

• S&P 500 Implied Correlation 59.73 -.75%

• ISE Sentiment Index 66.0 -26.67%

• Total Put/Call 1.29 +25.24%

• NYSE Arms 1.71 +43.59% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.09 +3.63%

• America Energy Sector High-Yield CDS Index 1,621.0 +3.46%

• European Financial Sector CDS Index 71.42 +3.22%

• Western Europe Sovereign Debt CDS Index 22.08 +1.31%

• Asia Pacific Sovereign Debt CDS Index 61.54 +3.53%

• Emerging Market CDS Index 320.65 +1.75%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.60 -.02%

• 2-Year Swap Spread 24.75 -.5 basis point

• TED Spread 26.5 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.5 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% -1.0 basis point

• Yield Curve 158.0 unch.

• China Import Iron Ore Spot $51.42/Metric Tonne -.58%

• Citi US Economic Surprise Index -14.4 -7.4 points

• Citi Eurozone Economic Surprise Index -5.6 -14.2 points

• Citi Emerging Markets Economic Surprise Index -14.5 -5.4 points

• 10-Year TIPS Spread 1.76 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.17 -.04

Overseas Futures:

• Nikkei 225 Futures: Indicating -170 open in Japan 
• China A50 Futures: Indicating -254 open in China

• DAX Futures: Indicating -63 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long